Tuesday, July 11, 2006

Dow and SP 500 Differences

Most introductory finance classes cover the makeup of different indicies. For instance the Dow Jones Industrial Average is price weighted and composed of 30 "blue chip" stocks whereas the S&P 500 is weighted based on market capitalization and includes 500 stocks.The Street.com looks at some of the implications of this difference:"What is the impact of the different weighting schemes?....if one

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